Most car owners spend a lot of time thinking about the features of a car they want to purchase, but they don’t typically pay as much attention to the insurance terms and coverage. When you face a car accident or vehicle damage from a third party, your car insurance policy will offer you financial aid. Getting a car insurance policy that lowers your premium would benefit you.
Here are 12 ways to hunt for a good deal and lower car insurance costs:
Be a Safe Driver
Having a bad driving record, such as breaking traffic rules or having other accidents, may increase your car’s insurance premium. Insurance companies take your driving history into account before giving coverage to your vehicle. However, some insurance companies provide car owners discounts for having a clean driving record over a certain period. As a result, being a safe driver can help you get some reduction on the premium.
The Premium Depends on the Type of Car
A fancy car with expensive features will increase your insurance cost. Insurance companies may research things like how likely it is that your vehicle will be stolen, how much the model will cost in case of a breakdown, and the cost of repairs, etc. An expensive car will have a higher premium, while a low-cost vehicle will have a lower premium. Additional modifications to the car can also increase your insurance premium, mainly due to the increased liability the insurance company has to bear.
Increase the Deductibles
A deductible is the amount a car owner agrees to pay voluntarily in case of an insurance claim. If the car owners agree to pay a voluntary sum as a deductible, the insurance company will pay the rest during a claim. In such events, the car owners can pay a lower premium as the insurance company’s liability is less. However, car owners also get the option of zero voluntary claim deductions. What happens here is that the insurance company will allow car owners to claim the entire amount. In this case, the premium will be higher. To put it precisely – the higher the deductible, the lower the premium. Therefore, increasing the deductibles can help car owners to get a lower premium.
Compare Rates of Multiple Insurance Companies
Whether you are getting vehicle insurance for the first time, switching to another company, or renewing your package, it is always recommended to do thorough research and select the best coverage for your car that fits your budget. Online research might help car owners compare prices and help them get the lowest rate possible.
Additionally, you must also check the reputation of the auto insurance company and its financial strength to ensure you can avoid falling into trouble when the need for the cam arises. Therefore, comparing the prices of different insurance companies will help you get the right insurance with a lower premium.
Switch to Pay-As-You-Go Insurance
Switching to Pay-As-You-Go Insurance would be ideal for low-mileage and safe drivers. The insurer will track how well you drive, your mileage, speeding, etc., using a device installed in your car. A good driver will be entitled to a discount, and the insurance company will only charge the premium based on the mileage. Therefore, such drivers will be entitled to a lower premium.
Maintain a Good Credit Score
Most auto insurance companies use your credit score to calculate your car insurance premium rates. This score determines the possibility of you claiming the insurance. The chances of a higher claim by car owners are possible if their credit-based score is low. Some research shows that drivers with lower credit scores pay 76% more on average than drivers with good credit scores. Therefore, having a good credit score might help you get a lower premium.
Look For Car Insurance Discounts
There are various types of car insurance discounts in the market to cater to different kinds of clients. For example, paying the six-month or annual premium at once would give car owners a considerable discount. Having membership in particular organizations may also offer them good discounts. Some of the discounts offered by insurance companies are as follows:
- New car discount
- Multi-car discount
- Good student discount
- Good driver discount
- Vehicle safety discount
Install Anti-theft Devices
Anti-theft devices, which are used as a method of security, can be installed in cars for protection from any robbery or theft. The possibility of these cars being robbed with these devices installed is less, and as a result, claiming insurance is also less. Since insurers have lesser liability, they offer low premiums to car owners who have installed these devices. Such devices include brake locks, steering wheel locks, car alarms, etc. Hence, consider installing anti-theft devices, which would lower your premium.
Take a Defensive Driving Course
Car owners can save on their auto insurance if they complete a defensive driving course recognized by their insurance company. Before joining the class, make sure to find out about the discounts you will be getting from the insurance company, as it is essential to know whether the money and time spent on this course are worth enough to save on the insurance premium.
Make Use of NCB
NCB, which stands for No Claim Bonus, is a type of discount car owners get on the renewal premium if they do not claim for auto insurance the year before. If car owners pay from their pockets for minor repairs without claiming insurance, they can collect their NCB. Insurance companies give discounts of up to 50% on renewal premiums for saving NCB for five years. Therefore, NCB is a good way of lowering your car insurance premium.
Settle the Premium in Full
Many auto insurance companies offer discounts for making a bulk payment at once instead of paying the premium every month. So, if you can afford it, consider paying the whole premium in one go to avail yourself of a discount.
Bundle Insurance Policies
By combining auto and home insurance policies, car owners can obtain a bundle discount, also referred to as a multi-policy discount. For this, car owners must have auto and home insurance policies. However, getting two or more policies from the same insurance company also lowers your premium. So, if you have more than one type of insurance policy, get it all from one place and get a discount on your premium.
In Conclusion
Getting an economical insurance policy is essential to provide financial aid to your car from unexpected sudden events like major repairs, accidents, robbery, etc. To save money, search for car insurance policies with a lower premium by using the tips mentioned above.
